Simplify Strengthen Grow Accrol Group Holdings Plc Results

Simplify Strengthen Grow Accrol Group Holdings Plc Results Presentation FY 19 September 2019

Simplify FOUNDATIONS LAID FOR SUSTAINABLE GROWTH Strengthen +64% +12% +£ 6. 8 M COST BASE REDUCTION OUTPUT PER HEAD TOILET TISSUE REVENUE ADJUSTED HEADWINDS EBITDA GROWTH MANAGED +£ 10. 8 M Grow -29%

CONTINUED IMPROVEMENTS Simplify Strengthen -£ 6. 7 m +1% -£ 17. 6 m FY 20 *GROSS MARGIN NET DEBT REDUCED CORE REVENUE COST BASE REDUCTION GUIDANCE UNCHANGED * Adjusted gross margin moved from 17. 5% to 18. 2% Grow 3 +4%

THE MOST COMPLEX TURNAROUND: DELIVERED The turnaround The downturn Simplification Streamlining Operational efficiency Scale & Growth Future developments We are here Cost base Simplify Net Debt reduced by £ 6. 7 m Exited Skelmersdale People 589 to 340 Industry leading team in place Leadership team right for growth SKU 460 to 120 Fundraising and new bank facility Created cash headroom and time Cost base Reduced by £ 17. 6 m Material types 75 to 20 Grow Platform for growth New Board and team build begins World class team to build for the future Production lines 18 to 10 EBITDA Automation Head count reduction 4 2017 2018 Strengthen Simplification Reduction of raw materials and finished goods Exiting Improved controls, releases space improves cash Logistics warehousing Commissioned new £ 4 m line in Leyland Improved efficiency and capacity 2019

The turnaround costs 3, 756 3, 452 7, 208 - 724 B – Skelmersdale exit 605 2, 569 3, 174 C – Operational reorganisation and restructure 854 18 872 2, 298 10 2, 308 - 130 408 290 698 - - - 408 290 698 4, 164 3, 742 7, 906 Turnaround costs A – Management reorganisation and restructure D – Raw material and finished goods stock waste E – Impairment of property and equipment Other non-recurring financial instruments F – Loss on derivative financial instruments G - other Total “turnaround costs” 5 “Accrol is now a fundamentally different organisation, operationally, to that which floated on AIM in June 2016. Every part of the organisation has been restructured or changed in some way, since February 2018. ” It now has the right foundation to grow strongly Grow 2019 Total £’ 000 Strengthen Administration £’ 000 Simplify Cost of sales £’ 000

A YEAR OF GREAT CHANGE OUR BUSINESS 340 Employees Reduction driven by business simplification and increased Automation (589 to 340 like for like) Small profit achieved before charging £ 7. 9 m of turnaround costs Before charging £ 12. 9 m of exceptional costs 4 Simplify Customers 42% 20% Sites 27 Representing the low point of the turnaround cycle as issues identified and plans developed 73% Core Customers Operational efficiency & cost control 120 74% Stock Keeping Units (SKUs) Simplification of the business Grow Simplification as we exited none profitable customers and the AFH sector Against foreign exchange and paper price headwinds of £ 13. 2 m 6 Strengthen Closure of the Skelmersdale distribution centre

Cash and debt “Our goal in the mid-term is to return the business to satisfactory profitability levels and normalised debt. It remains the Board’s intention to return to the dividend list at the earliest appropriate opportunity” FY 19/FY 18 Financial results Target £ 119. 1 m £ 116. 3 m £ 139. 7 m £ 115. 2 m Grow ahead of the market £ 1. 0 m (£ 5. 8 m) £ 27. 1 m £ 33. 8 m EBITDA % Sales 0. 9% -4. 2% >10% Net debt/EBITDA 27. 1 x -5. 8 x <2 x Revenue Core revenue Adjusted EBITDA Net debt Credit facility 9% Strengthen FY 18 Simplify FY 19 22% Headroom ID Line 38% 7 Lease Grow RCF 31%

People Make the Difference “Industry leading team now in place” Simplify “Engagement across the workforce has significantly improved following the completion of the turnaround – and the teams throughout our organisation remain key” “With the tough job of turnaround behind us, I look forward to championing the continuous improvement culture throughout the organisation” Mark Dewhurst Chief Operating Officer Graham Cox Commercial Director Kathryn Robinson HR Director John Pilkington Finance Director Previous Experience Ten years at DS Smith as UK & Northern Europe Operations Director. Ten years with Crown Packaging in senior Operational & Commercial roles. Extensive operational leadership driving manufacturing excellence across multiple businesses. An inspirational leader of people and businesses, who understand the complexity of driving strategy throughout organisations at every level. A hands on leader who has delivered significant EBITDA improvements over the last six years. Previous Experience 24 years at DS Smith PLC covering sales, commercial and operations. Last two years as Managing Director, North America Packaging Division. Previous three years as Sector Director UK Packaging. Extensive experience in delivering industry leading levels of return, personally leading commercial improvement programmes delivering significant margin improvements. Delivered industry leading EBITDA improvements over the last six years. Previous Experience 11 years spent in private label manufacturing supplying the UK Grocery Sector. 9 years BBF Ltd (previously Mc. Cambridge Group) 4 & 2 years at Sodexo Healthcare and Alfred Mc. Alpine respectively. A dynamic individual with a clear understanding of how people at all levels with in an organisation make a difference to the success of the wider business. Previous Experience ACA, trained at KPMG 14 years at technology company Promethean leading teams through complex and challenging reporting environments giving clarity to the key drivers of a manufacturing business. Supports operational leaders and teams to make good commercial decisions as transformational change happens at a rapid pace. An excellent understanding of the business and great fit with the team. Grow “I am passionate about maximising the potential of our people to deliver profitable growth through setting aspiration targets in both operational and commercial Strengthen 8 “I help Accrol turn our vision into reality in terms of our people, our equipment and our product offering. ”

COMMITTED TO SUPERIOR PERFORMANCE 64% 30% reduction on prior year 48% reduction in All accidents 15% reduction in near misses 74% feel that management support them in their roles 64% of employees feel there are opportunities to grow 86% feel they have everything they need to full fil their roles 72% feel there is a clear common goal 42% reduction in head count on a like for like basis £ 5 m investment in machinery and simple automation £ 0. 8 m invested in training throughout the operational workforce STRONG CUSTOMER RELATIONSHIP 96% 12% 22% Percentage of deliveries on time and in full over a calendar months Represents 70% of our total revenue Up from 11% growth FY 18 No one customer equates to more than 20% of our total revenues GENERATE SHAREHOLDER RETURNS Down £ 6. 7 m £ 1. 0 m up 4% Down £ 6. 7 m to £ 27. 1 m An improvement of £ 6. 8 m on FY 18 Up to 18. 2% from 17. 5% Lost time accidents THE RIGHT PEOPLE Net Debt Toilet Tissue Growth Adjusted EBITDA Increase in Output per head Growth with top customers Grow 9 On time delivery Employee Engagement Strengthen 75% Simplify 5 Adjusted Gross Margin

STRONG POTENTIAL WITH A CONFIDENT MARKET SHARE Total UK soft tissue market £ 1. 59 billion 2. 8% (2018: £ 1. 54 bn) Simplify Private Label Branded Products 2018 • • • 10 2017 2018 53, 0% 47, 0% 53, 5% 46, 5% 56, 2% 43, 8% 49, 70% 2019 Kitchen Towel Largest Independent supplier growing at 12% (Toilet Tissue) Largest range of customers (27 core customers) Market grows at 8% per year Market insight First to offer a plastic free range Accrol 24% Accrol market share Private Label penetration Grow Toilet Tissue 50, 30% 50, 40% 49, 60% 53, 20% 46, 80% Strengthen 2017 Total UK market

Our progress “The turnaround work is behind us” Nov Dec Jan Logistics tender First phase automation completed 2020 New machine operational New IT system in place Automation programme begins Oct Feb Mar Apr Strengthen Sep Simplify 2019 Timeline May Jun Jul Aug Grow Right people Right roles 11 Quality, service, innovation Delight our customers Relentless on costs Consistent returns

Disclaimer Simplify The content of this promotion has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested This presentation is for information purposes only and no reliance may be placed upon it. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained in this presentation. 12 Grow This presentation contains certain forward-looking statements. Any statement in this presentation that is not a statement of historical fact including, without limitation, those regarding Accrol Group Holding plc’s future business, financial condition, financial performance, operations, prospects or developments is a forward-looking statement. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "anticipates", "believes", "envisages", "estimates", "expects", "intends", "hopes", "may", "plans", "targets", "will", "would", "could" or "should" or, in each case, the negative of those, variations or comparable expressions. By their nature, forward-looking statements involve risk and uncertainty as they relate to events which occur in the future. No representation or warranty is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Actual performance or results may differ materially from any future results, performance or achievement expressed or implied by these forward-looking statements. Factors which may give rise to such differences include (but are not limited to) changing business conditions, introduction of competing products by other companies, and changing economic, legal or regulatory conditions. New factors could emerge that could cause Accrol Group Holding plc’s business not to develop as it expects. These and other factors could adversely affect the outcome and financial effects of the events specified in this presentation. The forward-looking statements are made by the Directors of Accrol Group Holding plc in good faith based on the information available to them at 1 September 2019 and reflect the Directors’ knowledge and information available at that date and their beliefs and expectations. Accrol Group Holding plc does not intend to update any forward-looking statements contained in this presentation. Each forward-looking statement speaks only as at 1 September 2019 and Accrol Group Holding plc and its advisers expressly disclaim any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation. No statement in the presentation is intended to be, or intended to be construed as, a profit forecast or profit estimate and no statement in the presentation should be interpreted to mean that earnings per Accrol Group Holding plc share for the current or future financial years will necessarily match or exceed the historical earnings per Accrol Group Holding plc share. As a result, you are cautioned not to place any undue reliance on such forward-looking statements. Past performance of securities in Accrol Group Holding plc cannot be relied upon as a guide to the future performance of such securities. Strengthen This presentation does not constitute or form part of any offer or invitation for sale or subscription of, or any solicitation of any offer to buy or subscribe for, any securities of Accrol Group Holdings plc. The making of this presentation does not constitute a recommendation regarding any such securities.